H-Tek Manufacturing, Incorporated, makes two types of industrial component parts-the B300 and the T500. An absorpton costing income statement for the most recent period is shown Hi-Tek produced and sold 60.000 units of B300 at a price of $20 per unit and 12.600 units of 1500 at a price of $40 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below. The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $59,000 and $110,000 of the company's advertising expenses could be directly traced to B300 and T500. respectively. The remainder of the selling and administrative expenses was organization-sustaining in natute. The ABC team also distributed the company's manufacturing overheod to four activities as shown below: Required: 1. Compute the product margins for the B300 and T500 under the company's traditional costing system 2. Compute the product margins for 8300 and T500 under the activity-bosed costing system 3. Prepare a quantitative comparison of the traditional and activity-bosed cost assignments